PL EN


2013 | 135 | 51-63
Article title

Problem naruszania zasad teorii oczekiwanej użyteczności na przykładzie paradoksu Allais

Authors
Content
Title variants
EN
The Allais Paradox as an Example of the Incompatibility with the Expected Utility Theory
Languages of publication
PL
Abstracts
EN
Theorems about the rational decision making play very important role in the decision theory. According to these theorems people make their decisions by using the rule about maximum benefits. However in the literature we can find conclusions from research and experiments which indicate that when people are making decisions, they are very often breaking that rule about maximum profits. According to that research a few paradoxes of rationality were formulated. In this article experiments concerning the Allais paradoxes are analyzed. The incompatibility between paradox and the expected utility theory were discussed. Also the certainty effect and the common consequence effect were analyzed.
Year
Volume
135
Pages
51-63
Physical description
Contributors
References
  • Abdellaoui M. (2002): Economic Rationality under Uncertainty. GRID-CNRS, ENS de Cachan.
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  • Blavatsky P.R. (2010): Reverse Common Ratio Effect. "Journal of Risk Uncertain", No. 40.
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  • Conlisk J. (1989): Three Variants on the Allais Experiments. "The American Economic Review", No. 79.
  • Harrison G.W. (1994): Expected Utility and the Experimentalists. "Empirical Economics", No. 19.
  • Huck S., Muller W. (2007): Allais for All: Revisiting the Paradox. "ELSE Working Papers" No. 289.
  • Kahneman D., Tversky A. (1979): Prospect Theory: An Analysis of Decision under Risk. "Econometrica", Vol. 47, No. 2.
  • Machina M.J. (2004): Nonexpected Utility Theory. W: Encyclopedia Of Actuarial Science. Red. J.L. Teugels, B. Sundt. John Wiley & Sons, Chichester.
  • Quiggin J. (1981): A Theory of Anticipated Utility. "Journal of Economic Behavior and Organization", 3.
  • Shu L. (1993): What is Wrong with Allais' Certainty Effect? "Journal of Behavioral Decision Making", Vol. 6.
  • Tversky A., Kahneman D. (1992): Advances in Prospect Theory: Cumulative Representation of Uncertainty. "Journal of Risk and Uncertainty", 5.
  • Wakker P., Tversky A. (1993): An Axiomatization of Cumulative Prospect Theory. "Journal of Risk and Uncertainty", 7.
Document Type
Publication order reference
Identifiers
ISSN
2083-8611
YADDA identifier
bwmeta1.element.desklight-d9b752d2-d33c-4ed7-bb1e-9d74c66b2ede
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